You are here
Emerging Town and Cities Singapore requests lifting of trading suspension from Friday
EMERGING Town and Cities Singapore has requested to resume trading in its Catalist shares starting June 29, the property player said in a Singapore Exchange (SGX) filing on Thursday night.
It made disclosures of the confirmation from the board and sponsor on a few matters as conditions for SGX Regco's approvals.
First, an internal report dated Aug 25, 2017 by Baker Tilly Consultancy found satisfactory results in that "controls are adequately designed and operating effectively". "The group has in place adequate and effective internal controls addressing financial, operational and compliance risks, and during the period from Aug 26, 2017 to the date hereof, there have not been any material adverse issues pertaining to the group’s internal controls," it said.
The company and group have sufficient working capital for the next 12 months from the date of trading resumption, it said, barring any unforeseen circumstances. Moreover, based on the group’s cash balances and steady operating cash flow as at Dec 31, 2017 and the forecasted cash flow and positive cash balances, the company and group have the ability to continue to operate as a going concern.
It also said that the board has confirmed that sufficient information has been disseminated to the market to ensure fair and orderly trading in the company’s shares upon lifting of the trading suspension, as it is not aware of any material information that has not been disclosed or announced, and assured shareholders that it will update them if there are material developments.
It also made two undertakings: first, to procure third parties who are independent of Luo Shandong and his concert parties to take over Mr Luo's shares as and when he exercises his right under a convertible loan agreement (CLA) entered into in January 2017 with the company and the addendum deed entered into on Jan 18.
The second is that in the event that the company is not able to procure any such third parties as and when Mr Luo exercises his right under the CLA and the Addendum Deed, the company is to redeem a portion of the CLA in cash such that at any point in time, Mr Luo will not hold more than 10% of the enlarged share capital of the company or will not become the single largest shareholder of the company.